BRO Dividend Type Payments

Brown & Brown, Inc. dividend

Although BRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Brown & Brown, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:30 AM ET):

Brown & Brown, Inc. (BRO)
Bid Ask Last Change Volume P/E Market Cap
114.67 114.78 114.75 -2.47 211K 34 34B

BRO Dividend-Like Income Using Covered Calls

With BRO at 114.75, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.44 0.9
5% 5.74 1.6
10% 11.48 3.1

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 115.00 3.50 26 13.5 0.22 (0.2%)
Sep 19 115.00 8.60 152 5.7 0.22 (0.2%)
5% Yield On BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 115.00 3.50 26 13.5 0.22 (0.2%)
Sep 19 115.00 8.60 152 5.7 0.22 (0.2%)
10% Yield On BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 115.00 3.50 26 13.5 0.22 (0.2%)
Sep 19 115.00 8.60 152 5.7 0.22 (0.2%)

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